Stochastic Forest Stand Value and Optimal Timber Harvesting

Luis H. R. Alvarez

47 citations0/0 files storedSIAM Journal on Control and Optimization

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Stochastic processes and financial applications Forest Management and Policy Forest ecology and management

Abstract

We consider a Faustmann timber harvesting problem arising in the literature on rational forest management by modeling the value of the harvested resource as a time homogeneous, regular, and linear diffusion. We state a set of easily verifiable general conditions under which the existence and uniqueness of an optimal cutting value and, consequently, an optimal impulse control, are guaranteed. We also present a set of conditions under which increased volatility increases both the value and the optimal harvesting threshold at which the irreversible harvesting strategy is exercised.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 47 citations exist upstream.

References

1997The Stochastic Behavior of Commodity Prices: Implications for Valuation and Hedging 1996Handbook of Brownian Motion — Facts and Formulae 1990Stochastic Convenience Yield and the Pricing of Oil Contingent Claims 1970The Effect of Uncertainty on Saving Decisions 1985Investment and the Valuation of Firms When There is an Option to Shut Down 1998Stochastic Differential Equations 1994Optimal Switching in an Economic Activity under Uncertainty 1989The tree-cutting problem in a stochastic environment

Cited by

2006Optimal harvesting under resource stock and price uncertainty 2006The effects of implementation delay on decision-making under uncertainty 2008A Class of Solvable Stopping Games 2005A class of solvable stochastic dividend optimization problems: on the general impact of flexibility on valuation 2016A General Verification Result for Stochastic Impulse Control Problems 2013On the solution of general impulse control problems using superharmonic functions

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.